Bureaucratic Practices in Japan and the United States and the Regulation of Advertisements by Investment Advisors

Abstract

SPECIAL SECTION: JAPAN TRADE BUREAUCRATIC PRACTICES IN JAPAN AND THE UNITED STATES AND THE REGULATION OF ADVERTISEMENTS BY INVESTMENT ADVISORS J. Robert Brown, Jr.t INTRODUCTION Much has been written about the unique character of the administrative system in Japan. 1 For economic matters, in partic- ular, commentators have stressed the powerful and intrusive role played by the Japanese bureaucracy. 2 Yet, the bureaucracy often t Associate Professor of Law, University of Denver College of Law; Of Coun- sel, Holland & Hart, Denver, Colorado; J.D., University of Maryland, 1980; Ph.D., Georgetown University, 1993. I am indebted to the firm of Komatsu & Koma in Tokyo, Japan, particularly Fumio Koma, Esq., for providing materials on the regula- tions in Japan governing advertisements by investment advisors. I also received in- valuable assistance from a number of people with hands-on experience in the area, including Frederick Herman at Denver Investment Advisors. Officers at both the Federation of Bankers Associations of Japan and the Japan Securities Investment Advisors Association provided helpful materials. A significant amount of material was ably translated from Japanese by Ayae Kato in Denver. Professors David Barnes and John Reese, both at the University of Denver College of Law, made extensive comments and expunged a number of errors. Finally, I received invalua- ble financial assistance for this project from The Hughes Research Fund. 1. The best recent contribution in this area is KAREL VAN WOLFEREN, THE ENIGMA OF JAPANESE POWER: PEOPLE AND POLITICS IN A STATELESS NATION 2. See CHALMERS JOHNSON, MITI AND THE JAPANESE MIRACLE: THE 1925-1975 (1982). For a more detailed examina- tion of the regulation of the Japanese financial markets, particularly by the Ministry of Finance, see J. ROBERT BROWN, JR., OPENING JAPAN'S FINANCIAL MARKETS GROWTH OF INDUSTRIAL POLICY,